Required:

a) Critically analyse the investment proposal and provide recommendation by using the NPV and IRR result. Your discussion should include analysis of how the forecasted inputs to the appraisal could potentially impact the result.

b) Suggest another investment proposal technique that Besla Energy may use to evaluate this project, and critically discuss the applicability, benefits and limitations of this technique in the form of a literature review (no calculation required)

c) Other issues for management to consider that you think are vital for them to survive and make a profit.

Case Study Besla Energy Corporation is a power generator manufacturer that exports their products to more than 70 countries. They design and build their gas and diesel generators at accredited manufacturing facility in the United States. The company has always taken care of environment concerns, with industry-leading soundproofing and emission control that meets all standards. Due to the growth potential of sustainable energy, Besla Energy is considering restructuring part of their facility for the production of industrial solar panels. The project feasibility committee has collated forecasted investments and financing cash flows and other information for this project. An appraisal has been performed with the following result